Still, $5.6 trillion worth of debt remains on S&P 500 balance
sheets, and it will eventually come due. And much of it will most
likely be rolled as companies refinance at whatever interest
rates are in the future.

JPMorgan's Dubravko Lakos-Bujas included this chart showing when
all that debt will come due. Most companies have time to prepare
for what they are likely to assume will be an environment of
higher interest rates.

JPMorgan

"Interest expense as a percent of revenues should remain stable
even if rates were to rise this year," Lakos-Bujas said.

But eventually, higher rates will take a material bite out of
profits.

"Assuming rates continually rise, we expect interest expense to
become a gradual headwind by 2016/2017," Lakos-Bujas said. "The
low-interest-rate policy has had a material impact on S&P 500
EPS, with interest expense declining from $55/share in 2007 to
around $18 in recent years. Deleveraging partially explains the
decline in interest expense.

"Assuming the Fed Fund rate moves higher, we estimate the S&P
500 EPS could see a gradual headwind of $10-15 over a period of
several years."